Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):

¨

Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging
growth company ¨

If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Certain Information Not Filed. The information in
Item 2.02 of this Form 8-K and Exhibit 99.1 attached to this Form 8-K shall not be deemed “filed” for purposes of Section
18 of the Securities Exchange Act of 1934, nor shall such Item 2.02 or such Exhibit 99.1 or any of the information contained therein
be deemed incorporated by reference in any filing under the Securities Exchange Act of 1934 or the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such filing.

Item 2.02.

Results of Operations and Financial Condition.

On May 5, 2020, Activision Blizzard, Inc. (the “Company”)
issued a press release announcing results for the Company for the fiscal quarter ended March 31, 2020. A copy of the press release
is attached hereto as Exhibit 99.1. As previously announced, the Company is hosting a conference call and webcast in conjunction
with that release.

“Our goal to connect the world through
epic entertainment is more important to our players than ever before,” said Bobby Kotick, Chief Executive Officer of Activision
Blizzard. “We delivered strong financial results for the first quarter, and are raising our full year outlook. I have
been awestruck by the strength of our employees and their families during this difficult time. Whether managing healthcare
or childcare, performing public service or community service, our teams around the world have shown ingenuity and resilience. In
the face of so many difficulties, our employees have made certain that the joy, the engagement, and the benefits of gaming remain
an effective way to help keep our 400 million players around the world connected and safe.”

Financial Metrics

Q1

(in
millions, except EPS)

2020

Prior
Outlook*

2019

GAAP
Net Revenues

$

1,788

$

1,640

$

1,825

Impact
of GAAP deferralsA

$

(266)

$

(365)

$

(567)

GAAP
EPS

$

0.65

$

0.55

$

0.58

Non-GAAP
EPS

$

0.76

$

0.66

$

0.78

Impact
of GAAP deferralsA

$

(0.18)

$

(0.31)

$

(0.47)

*
Prior outlook was provided by the company on February 6, 2020 in its earnings release.

For the quarter ended March 31, 2020,
Activision Blizzard’s net revenues presented in accordance with GAAP were $1.79 billion, as compared with $1.83 billion
for the first quarter of 2019. GAAP net revenues from digital channels were $1.44 billion, as compared with $1.39 billion for
the first quarter of 2019. GAAP operating margin was 34%. GAAP earnings per diluted share were $0.65, as compared with $0.58 for
the first quarter of 2019.

For the quarter ended March 31, 2020,
on a non-GAAP basis, Activision Blizzard’s operating margin was 40% and earnings per diluted share were $0.76, as compared
with $0.78 for the first quarter of 2019.

Please refer to the tables at the back
of this press release for a reconciliation of the company’s GAAP and non-GAAP results.

1

Activision Blizzard Announces
Q1 2020 Financial Results

Operating Metrics

For the quarter ended March 31, 2020,
Activision Blizzard’s net bookingsB were $1.52 billion, as compared with $1.26 billion for the first quarter
of 2019. Net bookingsB from digital channels were $1.36 billion, as compared with $1.07 billion for the first quarter
of 2019. In-game net bookingsC were $956 million, as compared with $794 million for the first quarter of 2019.

At Activision Blizzard, our number one
priority is the health and safety of our employees and their families. All of our offices moved to work-from-home environments
by mid-March. We are covering all costs of testing and treatment for affected employees and their families, and we have increased
access to tele-health resources and contracted private doctors and medical support in regions where our employees live and work.
And we are continuing to find other ways to support our employees and their families as we navigate through this unprecedented
situation, including services to help families balance work and home life.

The digital nature of our content means
our creative talent can continue to work on our product pipeline from home. While the shift to remote working adds complexity
and challenges in some areas of the game development process, we are implementing mitigation measures to address these areas and,
based on the work to date, we still expect to deliver a robust slate of content over the remainder of the year.

We have leveraged our game platforms to
disseminate critical health and safety information while offering in-game events and rewards to promote social distancing. We
have made donations to world class health organizations and medical centers in cities where our employees live and work,
funding promising convalescent blood therapies and drug trials. And we have made an additional contribution to our own Call of
Duty Endowment to continue placing veterans into high-quality jobs.

The increasingly digital, recurring and
cash-generative nature of our operations remains one of our fundamental strengths. With a strong balance sheet, low capital intensity
and a track record of disciplined capital allocation, we have substantial flexibility as we navigate through an uncertain environment.

Selected Business Highlights

Activision Blizzard exceeded its first-quarter
outlook, driven primarily by our investment in creative and commercial initiatives for Call of Duty® delivering
better-than-expected results throughout the quarter. We also saw continued momentum for World of Warcraft®
and better-than-expected results for other key franchises, as populations sheltering at home turned to our content for entertainment
and social connection. These trends have continued so far in the second quarter, with business momentum accelerating further in
April. In the current environment, we are fortunate to still be in a position to enable some of the world’s best gaming
experiences through our direct digital connection to hundreds of millions of people.

2

Activision Blizzard Announces
Q1 2020 Financial Results

Activision

·

Activision
had 102 million MAUsD in the first quarter.

·

Call
of Duty: Warzone launched on March 10, 2020 and has reached over 60 million
players to date.

·

Life-to-date,
Modern Warfare has sold through more units and has more players than any prior Call of Duty
title at this point after its release.

·

In
the first quarter, Call of Duty: Modern Warfare® unit sell-through
was the highest for the franchise outside of a launch quarter. Following substantial
year-over-year growth versus the prior title in January and February, unit sell-through
accelerated in March, driven by upgrades from Warzone as well as rising demand
amidst shelter-at-home conditions.

·

Also
in the first quarter, Modern Warfare in-game net bookingsC more than
doubled year-over-year versus Black Ops 4.

·

Call
of Duty Mobile continued to build on last October’s breakout launch with new
content, features and events aimed at optimizing engagement, retention and player investment.
The game saw increased reach and engagement in March, driven by an increased cadence
of compelling content and events as well as shelter-at-home tailwinds.

·

Originally
planned in a local city-based homestand format, the inaugural season of the professional Call of Duty LeagueTM
pivoted all matches to online play and remote production for the remainder of the
regular season, to keep players and fans safe while still delivering premium esports
content to a global audience.

Blizzard

·

Blizzard
had 32 million MAUsD in the first quarter.

·

After
doubling in the second half of 2019, World of Warcraft’s active player community1
increased further in the first quarter, driven by both new and returning players,
as the team continued to deliver more content between expansions than ever before.

·

Each
of Blizzard’s key franchises experienced a month-on-month increase in MAUsD
in March as a result of shelter-at-home tailwinds.

·

Hearthstone®
engagement improved sequentially, driven by the new Battlegrounds game mode
launched in November, and strong execution in live operations.

·

Overwatch®
engagement increased meaningfully in March and the Overwatch LeagueTM
successfully moved to online play and remote production during the quarter.

King

·

King
had 273 million MAUsD in the first quarter.

·

MAUsD
grew month-over-month in both January and February, and further accelerated
in March as shelter-at-home conditions came into effect.

·

Candy
CrushTM franchise MAUsD grew year-over-year in each month of
the quarter, with double-digit growth in March. Within the franchise, the community played
more game rounds than in any quarter since Activision Blizzard’s acquisition of
King.

·

Candy
Crush SagaTM and the wider Candy Crush franchise were once again
the top-grossing title and franchise in the U.S. mobile app stores.2

·

Advertising
net bookingsB grew over 75% year-over-year, even against the backdrop of the
sudden decline in demand across the digital advertising sector in March.

3

Activision Blizzard Announces
Q1 2020 Financial Results

Company Outlook

Our business exhibited accelerating momentum
entering the second quarter from the dual tailwinds of strong execution in the Call of Duty franchise following last year’s
increased investment, and increased engagement as people turned to our interactive content as they sheltered at home. The full
extent of the impact of the COVID-19 pandemic on our business, operations, and financial results will depend on numerous evolving
factors that we are not able to fully predict at this time. While there are risks related to global economic weakness, rising
unemployment, pressures on the retail channel, pricing and other potential factors, we also see many positive opportunities for
our operating performance this year, including the potential for continued heightened engagement in our content well beyond the
second quarter. We have aimed to be prudent in our guidance to account for these effects, and we believe there is potential for
overperformance if these risks do not materialize.

Regarding product development, the majority
of our employees are currently working from home, which while adding complexity to some areas of the game development process,
has not currently changed our plans for our key content releases this year.

Since we provided our initial guidance
in February, the strengthening dollar has resulted in an additional FX headwind to full year net bookings of approximately $100
million. Further, the strengthening dollar and lower interest income from the current interest rate environment represent an additional
headwind to full-year GAAP and non-GAAP EPS of approximately $0.08 versus our prior outlook. Nonetheless, with strong momentum
across the business we are raising our outlook for net revenues and EPS for the year, more than passing through the Q1 earnings
outperformance despite these headwinds.

(in
millions, except EPS)

GAAP
Outlook

Non-GAAP
Outlook

Impact
of GAAP
deferralsA

CY
2020

Net
Revenues

$

6,800

$

6,800

$

100

EPS

$

2.22

$

2.62

$

(0.02)

Fully
Diluted Shares

778

778

Q2
2020

Net Revenues

$

1,690

$

1,690

$

(15)

EPS

$

0.54

$

0.64

$

0.01

Fully
Diluted Shares

776

776

Net bookingsB are expected
to be $6.9 billion for 2020 and $1.675 billion for the second quarter of 2020.

Capital Allocation

The Board of Directors declared a cash dividend of $0.41 per
common share, payable on May 6, 2020 to shareholders of record at the close of business on April 15, 2020, which represents
an 11% increase from 2019.

4

Activision Blizzard Announces
Q1 2020 Financial Results

Conference Call

Today at 4:30 p.m. EDT, Activision Blizzard’s management
will host a conference call and webcast to discuss the company’s results for the quarter ended March 31, 2020 and management’s
outlook for the remainder of the calendar year. The company welcomes all members of the financial and media communities and other
interested parties to visit https://investor.activision.com to listen to the conference call via live Webcast or to listen to
the call live by dialing into 866-777-2509 in the U.S. We encourage participants to pre-register for the conference call using
the following link http://dpregister.com/10142657. A replay of the call will also be available
after the call's conclusion and archived for one year at https://investor.activision.com/events.cfm.

About Activision Blizzard

Activision Blizzard, Inc. connects and engages the world
through epic entertainment. A member of the Fortune 500 and S&P 500, Activision Blizzard is a leading interactive entertainment
company. We delight hundreds of millions of monthly active users around the world through franchises including Activision’s
Call of Duty®, Spyro®, and Crash Bandicoot™, Blizzard Entertainment's World of Warcraft®, Overwatch®, Hearthstone®,
Diablo®, StarCraft®, and Heroes of the Storm®, and King's Candy Crush™, Bubble Witch™, and Farm Heroes™.
Headquartered in Santa Monica, California, Activision Blizzard has operations throughout the world. More information about Activision
Blizzard and its products can be found on the company's website, www.activisionblizzard.com.

1
Defined as players with monthly or longer-term subscriptions.

2 Based on App Annie
Intelligence.

A
Net effect of accounting treatment from revenue deferrals on certain of our online-enabled products. Since certain of our games
are hosted online or include significant online functionality that represents a separate performance obligation, we defer the
transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues
over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and
recognized as an expense as the related revenues are recognized. Impact from changes in deferrals refers to the net effect from
revenue deferrals accounting treatment for the purposes of revenues, along with, for the purposes of EPS, the related cost of
revenues deferrals treatment and the related tax impacts. Internally, management excludes the impact of this change in deferred
revenues and related cost of revenues when evaluating the company’s operating performance, when planning, forecasting and
analyzing future periods, and when assessing the performance of its management team. Management believes this is appropriate because
doing so enables an analysis of performance based on the timing of actual transactions with our customers. In addition, management
believes excluding the change in deferred revenues and the related cost of revenues provides a much more timely indication of
trends in our operating results.

B
Net bookings is an operating metric that is defined as the net amount of products and services sold digitally or sold-in physically
in the period, and includes license fees, merchandise, and publisher incentives, among others, and is equal to net revenues excluding
the impact from deferrals.

C
In-game net bookings primarily includes the net amount of downloadable content and microtransactions sold during the period, and
is equal to in-game net revenues excluding the impact from deferrals.

D
Monthly Active User (“MAU”) Definition: We monitor MAUs as a key measure of the overall size of our user base. MAUs
are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding
the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period.
An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision
and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two
users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally
be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data
is based on information provided to us by those third parties, or, if final data is not available, reasonable estimates of MAUs
for these third-party published games.

5

Activision Blizzard Announces Q1 2020 Financial
Results

Non-GAAP
Financial Measures: As a supplement to our financial measures presented in accordance with U.S. Generally Accepted Accounting
Principles (“GAAP”), Activision Blizzard presents certain non-GAAP measures of financial performance. These non-GAAP
financial measures are not intended to be considered in isolation from, as a substitute for, or as more important than, the financial
information prepared and presented in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they
do not reflect all of the items associated with the company’s results of operations as determined in accordance with GAAP.

Activision
Blizzard provides net income (loss), earnings (loss) per share, and operating margin data and guidance both including (in accordance
with GAAP) and excluding (non-GAAP) certain items. When relevant, the company also provides constant FX information to provide
a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.
In addition, Activision Blizzard provides EBITDA (defined as GAAP net income (loss) before interest (income) expense, income taxes,
depreciation, and amortization) and adjusted EBITDA (defined as non-GAAP operating margin (see non-GAAP financial measure below)
before depreciation). The non-GAAP financial measures exclude the following items, as applicable in any given reporting period
and our outlook:

·

expenses
related to share-based compensation;

·

the
amortization of intangibles from purchase price accounting;

·

fees
and other expenses related to acquisitions, including related debt financings, and refinancing
of long-term debt, including penalties and the write off of unamortized discount and
deferred financing costs;

·

restructuring
and related charges;

·

other
non-cash charges from reclassification of certain cumulative translation adjustments
into earnings as required by GAAP;

·

the
income tax adjustments associated with any of the above items (tax impact on non-GAAP
pre-tax income is calculated under the same accounting principles applied to the GAAP
pre-tax income under ASC 740, which employs an annual effective tax rate method to the
results); and

·

significant
discrete tax-related items, including amounts related to changes in tax laws (including
the Tax Cuts and Jobs Act enacted in December 2017), amounts related to the potential
or final resolution of tax positions, and other unusual or unique tax-related items and
activities.

6

Activision Blizzard Announces
Q1 2020 Financial Results

In the future,
Activision Blizzard may also consider whether other items should also be excluded in calculating the non-GAAP financial measures
used by the company. Management believes that the presentation of these non-GAAP financial measures provides investors with additional
useful information to measure Activision Blizzard’s financial and operating performance. In particular, the measures facilitate
comparison of operating performance between periods and help investors to better understand the operating results of Activision
Blizzard by excluding certain items that may not be indicative of the company’s core business, operating results, or future
outlook. Additionally, we consider quantitative and qualitative factors in assessing whether to adjust for the impact of items
that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Internally,
management uses these non-GAAP financial measures, along with others, in assessing the company’s operating results, and
measuring compliance with the requirements of the company’s debt financing agreements, as well as in planning and forecasting.

Activision
Blizzard’s non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles, and
the terms non-GAAP net income, non-GAAP earnings per share, non-GAAP operating margin, and non-GAAP or adjusted EBITDA do not
have a standardized meaning. Therefore, other companies may use the same or similarly named measures, but exclude different items,
which may not provide investors a comparable view of Activision Blizzard’s performance in relation to other companies.

Management
compensates for the limitations resulting from the exclusion of these items by considering the impact of the items separately
and by considering Activision Blizzard’s GAAP, as well as non-GAAP, results and outlook, and by presenting the most comparable
GAAP measures directly ahead of non-GAAP measures, and by providing a reconciliation that indicates and describes the adjustments
made.

Cautionary
Note Regarding Forward-looking Statements: The statements contained herein that are not historical facts are forward-looking
statements including, but not limited to statements about: (1) projections of revenues, expenses, income or loss, earnings
or loss per share, cash flow, or other financial items; (2) statements of our plans and objectives, including those related
to releases of products or services and restructuring activities; (3) statements of future financial or operating performance,
including the impact of tax items thereon; and (4) statements of assumptions underlying such statements. Activision Blizzard, Inc.
generally uses words such as “outlook,” “forecast,” “will,” “could,” “should,”
“would,” “to be,” “plan,” “aims,” “believes,” “may,” “might,”
“expects,” “intends,” “seeks,” “anticipates,” “estimate,” “future,”
“positioned,” “potential,” “project,” “remain,” “scheduled,” “set
to,” “subject to,” “upcoming,” and other similar words and expressions to help identify forward-looking
statements. Forward-looking statements are subject to business and economic risks, reflect management’s current expectations,
estimates, and projections about our business, and are inherently uncertain and difficult to predict.

7

Activision Blizzard Announces
Q1 2020 Financial Results

We caution
that a number of important factors, many of which are beyond our control, could cause our actual future results and other future
circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited
to: the ongoing global impact of a novel strain of coronavirus which emerged in December 2019 (“COVID-19”) (including,
without limitation, the potential for significant short- and long-term global unemployment and economic weakness and a resulting
impact on global discretionary spending; potential strain on the retailers and distributors who sell our physical product to customers;
effects on our ability to release our content in a timely manner; the impact of large-scale intervention by the Federal Reserve
and other central banks around the world, including the impact on interest rates; and volatility in foreign exchange rates); our
ability to consistently deliver popular, high-quality titles in a timely manner, which has been made more difficult as a result
of the COVID-19 pandemic; concentration of revenue among a small number of franchises; our ability to satisfy the expectations
of consumers with respect to our brands, games, services, and/or business practices; our ability to attract, retain and motivate
skilled personnel; rapid changes in technology and industry standards; competition, including from other forms of entertainment;
increasing importance of revenues derived from digital distribution channels; risks associated with the retail sales business
model; the continued growth in the scope and complexity of our business, including the diversion of management time and attention
to issues relating to the operations of our newly acquired or started businesses and the potential impact of our expansion into
new businesses on our existing businesses; substantial influence of third-party platform providers over our products and costs;
risks associated with transitions to next-generation consoles; success and availability of video game consoles manufactured by
third parties; risks associated with the free-to-play business model, including dependence on a relatively small number of consumers
for a significant portion of revenues and profits from any given game; our ability to realize the expected financial and operational
benefits of, and effectively implement and manage, our previously-announced restructuring actions; our ability to quickly adjust
our cost structure in response to sudden changes in demand; risks and costs associated with legal proceedings; intellectual property
claims; changes in tax rates or exposure to additional tax liabilities, as well as the outcome of current or future tax disputes;
our ability to sell products at assumed pricing levels; reliance on external developers for development of some of our software
products; the amount of our debt and the limitations imposed by the covenants in the agreements governing our debt; the seasonality
in the sale of our products; counterparty risks relating to customers, licensees, licensors, and manufacturers, which have been
magnified as a result of the COVID-19 pandemic; risks associated with our use of open source software; piracy and unauthorized
copying of our products; insolvency or business failure of any of our partners, which has been magnified as a result of the COVID-19
pandemic; risks and uncertainties of conducting business outside the United States (“U.S.”); increasing regulation
of our business, products, and distribution in key territories; compliance with continually evolving laws and regulations concerning
data privacy; reliance on servers and networks to operate our games and our proprietary online gaming service; potential data
breaches and other cybersecurity risks; and the other factors identified in “Risk Factors” included in Part I, Item
1A of our Annual Report on Form 10-K for the year ended December 31, 2019 and this Quarterly Report on Form 10-Q.

The forward-looking
statements contained herein are based on information available to Activision Blizzard, Inc. as of the date of this filing
and we assume no obligation to update any such forward-looking statements. Although these forward-looking statements are believed
to be true when made, they may ultimately prove to be incorrect. These statements are not guarantees of our future performance
and are subject to risks, uncertainties, and other factors, some of which are beyond our control and may cause actual results
to differ materially from current expectations.

Activision Blizzard, Inc.

Investors and Analysts:

ir@activisionblizzard.com

or

Press:

pr@activisionblizzard.com

###

(Tables to Follow)

8

1

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in millions, except per share data)

Three Months Ended March 31,

2020

2019

Net revenues

Product sales

$

543

$

656

Subscription, licensing, and other revenues 1

1,245

1,169

Total net revenues

1,788

1,825

Costs and expenses

Cost of revenues—product sales:

Product costs

119

152

Software royalties, amortization, and intellectual property licenses

82

111

Cost of revenues—subscription, licensing, and other:

Game operations and distribution costs

258

239

Software royalties, amortization, and intellectual property licenses

46

61

Product development

238

249

Sales and marketing

243

207

General and administrative

167

179

Restructuring and related costs

23

57

Total costs and expenses

1,176

1,255

Operating income

612

570

Interest and other expense (income), net

8

3

Income before income tax expense

604

567

Income tax expense

99

120

Net income

$

505

$

447

Basic earnings per common share

$

0.66

$

0.58

Weighted average common shares outstanding

769

764

Diluted earnings per common share

$

0.65

$

0.58

Weighted average common shares outstanding assuming dilution

774

770

1

Subscription, licensing,
and other revenues represent revenues from World of Warcraft subscriptions, licensing
royalties from our products and franchises, downloadable content, microtransactions,
and other miscellaneous revenues.

Reflects
the net effect from deferral of revenues and (recognition) of deferred revenues, along
with related cost of revenues, on certain of our online-enabled products, including the
effects of taxes.

5

Reflects
the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax
income is calculated under the same accounting principles applied to the GAAP pre-tax
income under ASC 740, which employs an annual effective tax rate method to the results.

The GAAP and non-GAAP earnings
per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.

5

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES

(Amounts in millions, except per share data)

Three Months End ed March 31, 2019

Net
Revenues

Cost
of Revenues
- Product Sales:
Product Costs

Cost
of Revenues
- Product Sales:
Software
Royalties and
Amortization

Cost
of Revenues
- Subs/Lic/Other:
Game Operations
and Distribution
Costs

Reflects
the net effect from deferral of revenues and (recognition) of deferred revenues, along
with related cost of revenues, on certain of our online-enabled products, including the
effects of taxes.

5

Reflects
the income tax impact associated with the above items. Tax impact on non-GAAP pre-tax
income is calculated under the same accounting principles applied to the GAAP pre-tax
income under ASC 740, which employs an annual effective tax rate method to the results.

The GAAP and non-GAAP earnings
per share information is presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.

6

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

OPERATING SEGMENTS INFORMATION

(Amounts in millions)

Three Months
Ended:

March
31, 2020

$
Increase / (Decrease)

Activision

Blizzard

King

Total

Activision

Blizzard

King

Total

Segment Net Revenues

Net revenues
from external customers

$

519

$

437

$

498

$

1,454

$

202

$

98

$

(31

)

$

269

Intersegment net revenues1

—

15

—

15

—

10

—

10

Segment
net revenues

$

519

$

452

$

498

$

1,469

$

202

$

108

$

(31

)

$

279

Segment operating income

$

184

$

197

$

156

$

537

$

111

$

142

$

(22

)

$

231

Operating Margin

36.6

%

March
31, 2019

Activision

Blizzard

King

Total

Segment Net Revenues

Net revenues from external
customers

$

317

$

339

$

529

$

1,185

Intersegment net revenues1

—

5

—

5

Segment
net revenues

$

317

$

344

$

529

$

1,190

Segment operating income

$

73

$

55

$

178

$

306

Operating Margin

25.7

%

1

Intersegment
revenues reflect licensing and service fees charged between segments.

Our operating segments are consistent
with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision
maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and
related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense; amortization of
intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, costs, expenses and
accruals) related to acquisitions, associated integration activities, and financings; certain restructuring and related costs;
and other non-cash charges. See the following page for the reconciliation tables of segment revenues and operating income to
consolidated net revenues and consolidated operating income.

Our operating segments are also
consistent with our internal organization structure, the way we assess operating performance and allocate resources, and the availability
of separate financial information. We do not aggregate operating segments.

Reflects the net effect from deferral of revenues and
(recognition) of deferred revenues on certain of our online-enabled products.

11

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

EBITDA and ADJUSTED EBITDA

(Amounts in millions)

Trailing Twelve
Months Ended

June
30, 2019

September
30, 2019

December
31, 2019

March
31, 2020

March
31, 2020

GAAP Net Income

$

328

$

204

$

525

$

505

$

1,562

Interest and other expense (income),
net

(34

)

(2

)

7

8

(21

)

Provision
for income taxes1

42

45

(78

)

99

108

Depreciation
and amortization

79

80

81

62

302

EBITDA

415

327

535

674

1,951

Share-based
compensation expense2

38

27

39

43

147

Restructuring
and related costs3

22

28

30

23

103

Discrete
tax-related items4

—

—

17

—

17

Adjusted EBITDA

$

475

$

382

$

621

$

740

$

2,218

Change
in deferred net revenues and related cost of revenues5

$

(135

)

$

(53

)

$

577

$

171

$

560

1

Provision for income taxes for the three months ended
June 30, 2019 and December 31, 2019 also include impacts from significant discrete tax-related
items, including amounts related to changes in tax laws, amounts related to the potential
or final resolution of tax positions, and/or other unusual or unique tax-related items
and activities.

Reflects the impact of other unusual or unique tax-related
items and activities.

5

Reflects the net effect from deferral of revenues and
(recognition) of deferred revenues, along with related cost of revenues, on certain of
our online-enabled products.

Trailing twelve months are
presented as calculated. Therefore, the sum of the quarters, as presented, may differ due to the impact of rounding.

12

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation

(Amounts in millions, except per share data)

Outlook for
the

Outlook for
the

Three Months
Ending

Year Ending

June 30,
2020

December
31, 2020

Net
Revenues1

$

1,690

$

6,800

Change
in deferred revenues2

$

(15

)

$

100

Earnings Per Diluted Share (GAAP)

$

0.54

$

2.22

Excluding the impact of:

Share-based
compensation3

0.06

0.30

Amortization
of intangible assets4

0.02

0.10

Restructuring
and related costs5

0.03

0.07

Income
tax impacts from items above6

(0.01

)

(0.06

)

Earnings Per Diluted Share (Non-GAAP)

$

0.64

$

2.62

Net
effect of deferred net revenues and related cost of revenues
on Earnings Per Diluted Share7

$

0.01

$

(0.02

)

1

Net Revenues represents the revenue outlook for both
GAAP and Non-GAAP as they are measured the same.

2

Reflects the net effect from deferral of revenues and
(recognition) of deferred revenues on certain of our online-enabled products.

3

Reflects expenses related to share-based compensation.

4

Reflects amortization of intangible assets from purchase
price accounting, including intangible assets from the acquisition of King.

5

Reflects our restructuring initiatives, primarily severance,
facilities, and other restructuring-related costs we expect to incur as we continue to
execute against our previously disclosed restructuring plan.

6

Reflects the income tax impacts associated with the above
items. Due to the inherent uncertainties in share price and option exercise behavior,
we do not generally forecast excess tax benefits or tax shortfalls.

7

Reflects the net effect from deferral of revenues and
(recognition) of deferred revenues, along with related cost of revenues, on certain of
our online-enabled products, including the effect of taxes.

The per share adjustments and
the GAAP and Non-GAAP earnings per share information are presented as calculated. Therefore, the sum of these measures, as presented,
may differ due to the impact of rounding.

13

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

OPERATING METRICS

(Amounts in millions)

Net Bookings1

Three
Months Ended March 31,

2020

2019

$
Increase
(Decrease)

%
Increase
(Decrease)

Net bookings1

$

1,522

$

1,258

$

264

21

%

In-game net bookings2

956

794

162

20

1 We monitor net bookings as a key operating metric
in evaluating the performance of our business as it enables an analysis of performance based on the timing of actual transactions
with our customers, along with providing a more timely indication of trends in our operating results. Net bookings is the net
amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and
publisher incentives, among others, and is equal to net revenues excluding the impact from deferrals.

2 In-game net bookings primarily includes the net
amount of downloadable content and microtransactions sold during the period, and is equal to in-game net revenues excluding the
impact from deferrals.

Monthly Active Users3

March
31, 2019

June
30, 2019

September
30, 2019

December
31, 2019

March
31, 2020

Activision

41

37

36

128

102

Blizzard

32

32

33

32

32

King

272

258

247

249

273

Total MAUs

345

327

316

409

407

3 We monitor our average monthly active users (“MAUs”)
as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a
given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period
and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as
two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two
platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game
on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely
on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties,
or, if final data is not available, reasonable estimates of MAUs for these third-party published games.